Sri Lanka’s economic resiliency

We have it on the authority of British High Commissioner to Sri Lanka, John Rankin, that there are over 100 companies in Sri Lanka with UK affiliation, including major companies in the garment sourcing sector, such as, Marks and Spencer, Tesco, Triumph and Next. Addressing the Sri Lanka Apparel Exporters’ Association AGM recently he said that the UK is Sri Lanka’s second largest trading partner by volume despite Western economies facing challenging times.

By the time this newspaper hits the streets, the 2012 budget would be public knowledge. The general direction in which the economy would be guided in the year to come would also be known. From what could be seen, this is essentially a development-oriented budget with a futuristic vision. The budgetary outlay for almost all the ministries that impact positively and immediately on the lives of the people has been increased and if implemented effectively the programmes of these ministries could be expected to have a highly beneficial influence on the local socio-economic scene.

While the entirety of the budget proposals is yet to be learnt at the time of writing, the resiliency that the local economy has been displaying thus far, proves that the government’s far-thinking policy of giving priority to development is the right way to proceed. If this were not so, Sri Lanka could not be doing well in its economic ties with countries, such as, Britain, which constitute the heart of Europe.

The remarkableness of these achievements could be gauged from the fact that parts of the West have sunk further into recession. Besides, some of the more dynamic economies of East Asia are currently engaged in ‘currency wars’ with the West and could by no means be described as negotiating their economic relations with the West in an entirely trouble-free manner. In contrast, Sri Lanka has not only survived GSP plus constraints but is handling her commercial and trading ties with the rest of the world in a manner which is hugely beneficial to her.

These and more developments testify to the virtues of Sri Lanka adopting very effectively a policy of economic pragmatism. While seeking to protect her local economic enterprises and industries, Sri Lanka is not saying ‘no’ to well thought-out economic relations with the rest of the world, premised on the policy of Non-alignment. Hers is by no means an entirely inward-looking development strategy, but one which combines inwardness with a strong export-orientation and a policy of maximizing economic gains from external sources.

Thus we are having very favourable economic ties with countries, such as, Britain, and forging ever increasing mutually-beneficial relations with a host of other countries all over the world, based on a policy of friendship to all and enmity towards none. This principle has proved its handiness through the fact that we are yet to experience any serious economic downturns, although parts of even the West are experiencing a very cold winter of economic discontent.

However, the fact that we have survived many an economic storm has proved the judiciousness of the state having developed her human resources steadily over the years. That is, we have kept the essentials of the welfare system going over the years and this is proving highly beneficial now in the form an educated workforce which is leading from the front in maintaining the resiliency of the local economy.